Who’s Lying to Liberia: MFDP or the LRA?

L-R, Minister of Finance Augustine Ngafuan and LRA Commissioner General James Dorbor Jallah

Monrovia, Liberia—The Ministry of Finance and Development Planning (MFDP) stands accused of presenting a misleading $17.8 million revenue figure to the National Legislature for the first quarter of 2025—a number a report published by the Liberia Revenue Authority (LRA), the nation’s official tax collector, disputes as inaccurate. MFDP’s report to lawmakers understated the true scale of the deficit, raising serious questions about the credibility and intent behind their figures. In contradiction, the LRA’s official data for the same period revealed a deficit of $22 million—a staggering $4 million discrepancy[1][2].

By the third quarter of the fiscal year, all revenue streams—especially international receipts—should be fully reconciled, verified, and transparently reported. MFDP is procedurally required to notify the LRA of any inflows immediately to ensure the nation’s financial records remain accurate and credible. This glaring inconsistency suggests either gross negligence or a deliberate attempt to mislead the country[2][3].

Liberia’s Public Financial Management (PFM) Act of 2009 sets out binding legal obligations for fiscal transparency and accountability. Section 11.1 of the Act mandates that the Ministry of Finance must reconcile all government accounts and revenue streams with the records of the Liberia Revenue Authority and other relevant agencies on a regular basis, ensuring that discrepancies are promptly identified and addressed. This legal requirement is designed to guarantee that the nation’s financial records are accurate, consistent, and trustworthy[4][5].

Equally significant is Section 13.1, which states that any public official who knowingly misrepresents financial information or fails to comply with reporting requirements is subject to administrative and legal sanctions, including removal from office and prosecution. This provision shows the seriousness with which Liberian law treats fiscal misreporting.

Critical questions remain unanswered: Did MFDP report a cash carry-forward? Was this carry-forward factored into the over $880 million national budget? If so, why has this not been properly reflected in the LRA’s revenue statements? Or did MFDP understate the deficit to justify a recast budget and shift blame for their inefficiency onto the broader macroeconomic situation[2][3]? Liberians deserve clear answers!3][2].

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Additonal Sources

[1] [PDF] FIRST QUARTER - Liberia Revenue Authority https://revenue.lra.gov.lr/wp-content/uploads/2025/05/LRA-FY2025-1st-QUARTER-PERFORMANCE-REPORT.pdf

[2] Budget Under Strain - Liberia's Cash-Based Revenue Outlook and ... https://allafrica.com/stories/202506270243.html

[3] LIBERIA FACES SECOND BUDGET SHORTFALL UNDER PRESIDENT BOAKAI AS US$18 MILLION GAP EMERGES IN 2025 - Smart News Liberia https://smartnewsliberia.com/liberia-faces-second-budget-shortfall-under-president-boakai-as-us18-million-gap-emerges-in-2025/

[4] Public Finance Management Act https://revenue.lra.gov.lr/wp-content/uploads/2021/11/Public-Finance-Management-Act.pdf

[5] REPUBLIC OF LIBERIA https://www.cabri-sbo.org/uploads/bia/liberia_2009_legislation_public_finance_legislation_ministry_of_finance_ecowas_english_1.pdf

[6] [PDF] Liberia - IMF eLibrary https://www.elibrary.imf.org/downloadpdf/view/journals/002/2025/044/002.2025.issue-044-en.pdf

[7] LRA, MFDP Hold Strategic Meeting To Strengthen Revenue Collection https://revenue.lra.gov.lr/lra-mfdp-hold-strategic-meeting-to-strengthen-revenue-collection/

[8] [PDF] AN ACT TO ESTABLISH THE LIBERIA REVENUE AUTHORITY ... https://revenue.lra.gov.lr/wp-content/uploads/2022/06/revenueauthorityact.pdf

[9] LRA AND MFDP HOLD KEY MEETING TO ENHANCE REVENUE COLLECTION - Smart News Liberia https://smartnewsliberia.com/lra-and-mfdp-hold-key-meeting-to-enhance-revenue-collection/

[10] Microsoft Word - Duncan Last latest version 21-12-2009_accepted-BJ JG CK_-22-1-10 https://www.cabri-sbo.org/uploads/files/Documents/liberia_2009_legislation_public_finance_legislation_ministry_of_finance_ecowas_english_1.pdf

[11] Experience https://www.devex.com/organizations/liberia-revenue-authority-lra-134245

[12] [PDF] World Bank Document https://documents.worldbank.org/curated/en/099053123062595324/pdf/P177478026e82c0c0895a0a300f6e8ce12.pdf

[13] Act – 2013 – Act to establish the Liberia Revenue Authority https://www.clientearth.org/latest/documents/act-2013-act-to-establish-the-liberia-revenue-authority/

[14] [PDF] Liberia - African Development Bank Group https://www.afdb.org/sites/default/files/documents/projects-and-operations/liberia_2025_country_diagnostic_note.pdf

[15] Microsoft Word - Final Version of PFM Law-Agreed with the Legislature Feb 8 2010.docx https://www.wto.org/english/thewto_e/acc_e/lbr_e/WTACCLBR15_LEG_13.pdf

[16] [PDF] TRANSITION SUPPORT FACILITY - African Development Bank Group https://www.afdb.org/sites/default/files/documents/projects-and-operations/liberia_-_technical_advisory_assistance_and_capacity_building_support_to_the_liberia_revenue_authority.pdf

[17] [PDF] Financial governance for natural resource management https://www.gtai.de/resource/blob/1845492/d6f00e26b765214f1fcad67dc7af4441/PRO202412051845474%20-%20Annex%201.pdf

[18] REPUBLIC of LIBERIA Public Finance Management Regulations https://docslib.org/doc/2911899/republic-of-liberia-public-finance-management-regulations

[19] Revenue & Tax Policy Division https://www.mfdp.gov.lr/index.php/division/division-of-revenue-tax-policy/assistant-min-revenue-tax-policy-division?tmpl=component&print=1&format=print

[20] Government of Liberia Fiscal Rules for Implementation in 2025 https://www.mfdp.gov.lr/index.php/component/edocman/budget-policies/government-of-liberia-fiscal-rules-for-implementation-in-2025?Itemid=1743